The New York Stock Exchange (NYSE) has set the reference price for Spotify shares at $132.

Spotify’s $132 a share stock reference price gives the company a valuation of $24bn (£17.1bn), not far below analysts’ predicted rate of $25bn (£17.8bn). Unlike the majority of companies who float on the NYSE, Spotify is not issuing any new stock to raise capital, as it does not need to raise funds. This means that a price has not been set in advance for its shares.

According to the latest figures released by the Recording Industry Association of America (RIAA), streaming services powered a $1.23 billion year-on-year increase in the US recorded-music market.

Spotify’s shares will begin trading today as the company launches its IPO with a unique direct listing. In a blog post ahead of today’s IPO, Spotify CEO Daniel Ek said: “I have no doubt that there will be ups and downs as we continue to innovate and establish new capabilities.”

Spotify has announced that they closed 2017 with 159m monthly active users and 71m premium (subscription fee paying) subscribers, making it the global streaming leader. The Swedish streaming leader expects to reach just under 100 million paying subscribers by the end of 2018.

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